Utah Code 31A-18-110. Investment valuation reserves
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(1) The commissioner may by rule, applicable to all or any specified classes of insurers, provide for the establishment, in reasonable amounts, of investment valuation reserves that are necessary to lessen the impact on surplus of the fluctuation of the values of specific classes of assets. In formulating these rules, the commissioner shall consider:
Terms Used In Utah Code 31A-18-110
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Individual: means a natural person. See Utah Code 31A-1-301
- Insurance: includes :(96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;(96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and(96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Order: means an order of the commissioner. See Utah Code 31A-1-301
- Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(1)(a) similar rules used in other states or recommended for use by the National Association of Insurance Commissioners;(1)(b) the propensities of the various types and classes of investments to fluctuate in value; and(1)(c) the present and anticipated investment climate, as measured by economic indicators such as interest rates, price-level changes, market volatility, and economic growth or decline.
(2) The commissioner may by order require an individual insurer to establish investment valuation reserves in addition to those required for other insurers of the class to which the insurer belongs, to the extent that the financial condition of the insurer and the nature of its assets and liabilities or business require that those reserves be established to adequately protect its insureds.
(3) Where reasonably possible, reserves required under Subsection (1) shall correspond with those generally required in other states.